Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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Annotation 295.0571


295.0571 Sales to Cities. Sales by retailers to cities (and other political subdivisions) within the state of California are subject to sales tax. Such entities are within the section 6005 definition of ‘person' and there is no statutory exemption for sales to them. section 6091 provides: ". . . it shall be presumed that all gross receipts are subject to tax until the contrary is established." The retailer's right to reimbursement for the tax he must pay is governed by Civil Code section 1656.1, which deems it to be a contractual matter. However, regardless of whether the contract does or does not allow for reimbursement, the retailer is liable for payment of the tax on taxable sales. 6/28/89.